Sarissa Resources Inc (SRSR): Jim6103, with SRSR, let it be known&#823...

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Re: jim6103 post# 7032

Friday, 01/18/2008 2:23:50 AM

Friday, January 18, 2008 2:23:50 AM

Jim6103, with SRSR, let it be known…

I have always had the utmost respect for you and your thoughts and the major contributions you have made to this forum. However, when you have any stock with an ”officially confirmed” potential valuation of $4.7 Billion from the Canadian Government, then it’s really going to be hard to be conservative.

The current Market Cap for SRSR is:

.011 x 725,866,058 Fully Diluted OS = $7,984,527

That Niobium property acquired by SRSR now gives us an ”officially confirmed potential” Market Cap of $4.7 Billion.

Now that’s not saying that SRSR is going to capture all of that potential, but that is saying that there is a huge disparity in comparing the SRSR current Market Cap of $7,984,527 with the ”officially confirmed potential” Market Cap of $4.7 Billion. Now consider the post below again.
http://investorshub.advfn.com/boards/read_msg.asp?message_id=26076868

Keep in mind that the “Number 1” reason why people buy stocks in the market is because of its potential. I can name a few stocks for examples, but one stock in particular has just gone from the sub-penny range to .185 per share with nearly 10 times less potential valuation and that “potential” valuation wasn’t “officially confirmed” either. Again, SRSR has nearly 10 times that amount of valuation than from that other stock with a nearly the same OS and similar Float.

The 188,000,000 pounds of Niobium is something that I didn’t create or speculate about though. That is factual for ”officially confirmed” potential valuation by the Canadian Government that I did not make up.

No matter how you slice the pieces to the cake, there is nothing conservative about 188,000,000 pounds of Niobium especially since it costs $25 per pound. I’m sorry if I am having a hard time understanding this. Go to CBMM website below to see why going through that website makes it even harder:
http://www.us.cbmm.com.br/

Let me make sure I understand the level of your conservatism of which you are referring. You are saying that out of the $4.7 Billion in valuation, we could see a near-term profit valuation of SRSR equating to a high of 3% of the $4.7 Billion estimated reserves derived as indicated below:

188,000,000 pounds x $25 x .03 = $141,000,000

Then you say that we could then derive an Earnings Per Share (EPS) as indicated below:

$141,000,000 ÷ 725,866,058 Fully Diluted OS = 0.194 EPS

Now, the part that you left off was that the EPS must be multiplied by a PE Ratio to capture the current growth rate for its Sector and Industry that it trades in comparison to like stocks. To keep people from thinking that you are pumping (LOL), I will use 12 as a conservative PE Ratio to derive below:

.194 x 12 Conservative PE Ratio = $2.33 Current Potential Share Price

Ok, I’ll tone it down a bit and go with your thoughts (LOL)!

v/r
Sterling

Sterling's Trading & Investing Strategies:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=29867262